Thousands of people were caught out by emergency tax codes slapped on withdrawals in the three months to June 2017, official figures showed.
Former pension minister Steve Webb described the flawed system is "outrageous".
Most people accessing their pensions for the first time usually withdraw just a one-off amount.
But HMRC charges tax based on assumption the saver will withdraw the same amount every month.
It means that someone taking a lump sum of £10,000 from their pension will be charged tax at a rate of £120,000 a year - even though this is highly unlikely to be the case.
Mr... read more

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